DuPont Decomposition
Why does MAHLIFE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.2% = 16.5% × 0.06 × 3.39
Latest: FY2025
Profitability
Net Margin
16.5%
0.2% →16.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.07x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.39x
2.00x →3.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.2 pp over 3 years. Driven by net margin improving (0.2% → 16.5%), leverage rising (2.00x → 3.39x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.2% | 0.07 | 2.00 | 0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 500.2% | 0.00 | 2.65 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 16.5% | 0.06 | 3.39 | 3.2% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.